Tick Sizes

Swiss regulation does not make any provisions on the subject.

In order to ensure an orderly market in certain financial instruments, European regulation introduces a compulsory tick size regime across the EU. The targeted harmonization of tick sizes shall mitigate in particular the risks associated with ever-decreasing tick sizes for shares, depositary receipts and certain types of ETFs.

With respect to non-equity financial instruments and fixed income products, a large proportion of trading is executed using different trading methodologies and the regulation of the market via a mandatory tick size regime is not necessary. All other instruments are therefore exempted from this provision.

Our approach

The general approach is to align all trading segments to the new MiFID II tick size tables (where applicable). We will keep flexibility for either cross-listed products as well as products that do not fall under the new regime according to MiFID II. Exact details of how this will be implemented are still under evaluation.

SSX trading segments Tick-size table harmonization
Equities Under Evaluation - new!
SFS Under Evaluation - new!
ETF / ETSF / ETP / SF / IF Harmonize tick-size table - new!
CHF / Non-CHF Bonds Not applicable - no change
Structured Products Not applicable - no change
Service / venue  
SLS Mid-Point Execution - tick dependant on the primary market of the instrument which is going to change in some cases.
SCB Not applicable - no change
XBTR Not applicable - no change

We believe the approach outlined is aligned to the principles of EU law but is subject to regulatory approval. Implementation is scheduled for SMR7 (2017)

 

Swiss Regulation

European Regulation

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